Binance has grown to become a prominent cryptocurrency exchange with offices all across the globe. This company has actively extended its reach over the past few years, and currently offers everything, including spot and futures trading, as well as cryptocurrency mining and financing.
However, European regulatory authorities are investigating this company for enabling stock token trading and a regulatory agency in the United States is investigating the crypto exchange for admitting customers for derivative contracts. Binance, on the other hand, has always retained its reputation as a law-abiding corporation in all regions.
FSA Warnings against Binance
In June 2021, the Financial Services Agency of Japan (FSA) issued a warning against Binance, citing this crypto exchange’s continued provision of services in Japan without permission. Binance is already providing cryptocurrency trading services to Japanese citizens without being registered with the agency, according to the notice. This is the second time the Financial Services Agency of Japan has issued a warning to Binance.
In March 2018, the cryptocurrency exchange behemoth received its first warning from the FSA. The company would risk criminal penalties if it remained open without some kind of authorization, according to the regulator at the time. Binance was obliged to relocate its headquarters from Japan to Malta as a result of this. Japan was one of the first governments that required cryptocurrency exchanges to register.
FCA Bans Binance
Binance, the world’s largest crypto exchange, has been ordered to suspend regulated operations in the United Kingdom by a senior financial authority. This is one of the constant attempts by international authorities to regulate crypto-related enterprises.
Following its ban on Binance, the FCA issued a consumer alert. The action in the United Kingdom is similar to that in Japan, where financial officials informed Binance that it was not permitted to continue operations in the region.
Thailand’s SEC lawsuit against Binance
Binance has been charged with running a virtual currency operation without a license by Thailand’s Securities and Exchange Commission (SEC). This is yet another one of the latest in a long line of regulatory crackdowns on the service around the world and seems to be the most serious of all.
Only authorized organizations are permitted to provide services linked to cryptocurrency exchanges in Thailand, according to the SEC. The agency had written a letter to Binance in April, warning it about its operations, but had gotten no answer, prompting it to press criminal charges with Thai authorities.
Germany’s BaFin Warning against Binance
Binance could face a penalty from Germany’s financial authority BaFin if it sells securities-tracking virtual currencies without first releasing investment documentation.
The Justice Department and the IRS are investigating Binance Holdings Ltd., entangling its attempts to root out criminal acts that have flourished in the volatile, but most of all, unregulated industry. Officials investigating money laundering and tax evasion have requested data from users with knowledge of Binance’s operations as part of an ongoing investigation.
Last year, a blockchain investigation company with clients including US federal agencies, estimated that more assets linked to illegal activities passed via Binance than through all other cryptocurrency exchanges.
Currently, regulators are paying closer attention to Binance Holdings Ltd., with Thailand and the Cayman Islands being the latest countries to investigate this crypto exchange’s operations. Binance, on the other hand, has always maintained that it is a decentralized corporation that operates under a variety of regional licenses and that its business divisions adhere to local legislation.
The legislative restrictions and warnings illustrate the obvious conflict around virtual money, which is gaining traction with an increasing number of emerging participants despite governmental and mainstream institutional investors’ mistrust over its volatility and use by malicious people to support wrongdoings.
Bitunivex.com is regulated by Austrac, the Australian Financial Regulator, but at the same time, it provides its services on a global scale. No matter where you are, sign up today at Bitunivex and start trading or use the exchange.